Take-Two settles Hot Coffee suit for $20M

Take-Two, the parent company of developer Rockstar, has finally settled the long-running 'Hot Coffee' lawsuit in the US by agreeing to a whopping $20 million USD settlement to end the class action lawsuit.

The suit is based around the inclusion of hidden sexual content in Grand Theft Auto: San Andreas which was thought by some to be inaccessible in the game but was soon unlocked by players. The Federal Trade Commission investigated the matter in 2006 and found that Take-Two had been deceptive in how it marketed the game, though no fines or criminal charges were bought to bear against the company.

In return for the $20 million USD settlement the class action lawsuit will be dismissed. The money will then be deposited in a settlement fund that claimants can access.

It's also worth clarifying that this settlement stems from a 2006 consolidated securities class action lawsuit which is based on both the hidden content and the stock option issues, not the 2005 consumer class action suit.

Take-Two chairman Strauss Zelnick released a short statement saying that Take-Two was pleased to have reached a settlement and that it "represents another important step forward for the Company."

Of the proposed settlement Take-Two will only actually pay out $4,915,000 USD, while the remainder will be covered by various insurance firms.

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